In more than 40 episodes spanning 75 years, equity and bond fund investors have defied predictions that they would panic and spark crises. Yet banking regulators won’t let go of their “run” scenario. Why?

Spanish Prime Minister Pedro Sánchez delivers a speech on the second day of the parliamentary investiture debate at the Spanish Congress (Las Cortes) in Madrid on July 23, 2019. | Oscar del Pozo/AFP via Getty Images

Spain’s Sánchez fails in first vote on new PM

Spanish Socialist leader Pedro Sánchez failed to get enough support in parliament to be reappointed as prime minister, after coalition talks with the far-left Podemos stalled. However, he'll get another chance later in the week.

Sánchez has been caretaker prime minister since an April election in which the Socialist Party won but fell short of a majority.

An agreement with Podemos — Sánchez's most likely route to the prime ministership — seemed more likely after the far-left's leader, Pablo Iglesias, gave up on hopes of a Cabinet post. However, no deal has yet been agreed and the two leaders had a heated exchange in Congress on Monday.

The Socialist chief needed 176 votes — an absolute majority — to be confirmed as prime minister in Tuesday's vote. He got 124, with 170 voting against and 52 abstentions.

Sánchez will face parliament again on Thursday, and this time needs a simple majority of votes to become PM. If he loses that vote, he will have two months to build new alliances and return to parliament. Failure at that point would mean a fourth general election in four years for Spain.